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tv   Power Lunch  CNBC  August 27, 2013 1:00pm-2:01pm EDT

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>> let's give a quick look at the market. we are on session lows. some reports that a strike against syria could come as early as thursday but others saying the president is yet to make a decision on military action. the selling on wall street continues. it's been a difficult month for stocks and carol picks up the ball right now. >> hello, welcome everyone, i'm sue herera, tyler is out today. the u.s. prepares for some sort of strike against syria after last week's suspected chemical attacks. >> yes, we have team coverage on the military situation and indeed the market impact. we start with we're down 130 on the dow. >> no rebound as all. the day traders in this market will see no bounce at all, may be inclined to get out more. you need a bounce and we're not
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seeing it. we're down several days in a row, not only stocks but interest rates on downside and that's key here. look at this, down 6% here. emerging markets. 6% and 7%. they trade in the united states, exchange traded funds, turkey, thailand, all down. the transports are the weakest major down today because of the airline stocks. that's not a surprise. crude rallied to a 6 week high. these are steep declines, airlines have had a good year as profits have increased and we have the yield curve flattening as well that usually means trouble for bank stocks, wells fargo down 2%, morgan stanley to the weak side. gold up, you say flight to safety, concerns about syria, but i want to point out too, the ruppee has been getting crushed.
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rupee, the wedding season, gold prices go up for them and the parliament in india just approved a plan to provide cheaper grain for poor people. that's concerns about the rupee there and we're down almost 2% on that. that's a factor on why gold is moving up. >> very important one. bob, thank you. simon? >> sue, let's get down to the nasdaq market site. >> there are rising concerns around a syria attack definitely shifting the mood. the nasdaq 100, which was at a 13-year high has come down a little. technology is the worst performing sector in today's trade and this is something we typically see where there are geopolitical concerns weighing on the market. they get out of risk adverse sectors like tech. just as commodity traders have gold as the safe haven, apple,
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market theorist pointing out, objects of excessive enthusiasm in 2012 when investors flocked to the assets of safe haven trade. there is a cleardy verge ens but that's not the case today. oil may be the eye of the financial market storm. with the two-year notes getting back to gold and oil, you can see west texas crude is up almost 3%. the international benchmark will be what emerging markets will struggle with and benchmark more likely to be impacted by any military action in the gulf. let's get to rick santelli for more on the two-year auction. >> well, first, it was 34 billion. we've been doing packages including the 2-year of $35 million, you have to go to
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october of '08 to find one less than 35. two-year notes, the yield at auction 3.86, exactly where it needed to price. the wi market was 39 basis points offered at 38.5. the last several have been very close to three. 3.21 is a little below. that's the current bid to cover but it's still better than last several auctions. we saw indirects at 19.3 versus 29% and right about on spot with directs at 26.1 versus 4. dealers took 54.5% of the auction. it gets a c. very average, solid pricing but weak on the internals. tomorrow of course, we'll have 35 billion five-year notes and many were surprised it wasn't more aggressive considering what's in the news today. >> i am surprised as well. thank you so much, ricky. defense secretary hagel telling
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the bbc this morning, we are ready to go. the options are there. the united states department of defense is ready to carry out those options, end quote. jim is covering the d.o.d. what assets do we know are on stand by and where are they? >> the only assets that are going to participate in air strikes -- any possible air strikes against syria are those four guided missile destroyers that have been in the mediterranean for some time. each is loaded with 56 cruise missiles that could be used to launch what are described to us as limited air strikes against specific targets there in syria, tied not to the chemical weapons themselves but the delivery system such as aircraft launchers, artillery, that sort of thing. u.s. officials stress that there is no intent to attack the assad regime, that there is no intent
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to overthrow the regime for obvious reasons. it would create a power vacuum there. a few minutes ago, the english prime minister cameron issued a statement saying that any response to the chemical weapons attacks in syria have to be proportional and not aimed at overturning the regime in syria. >> thank you very much, jim. we turn to our international correspondent, michelle car russo cabrera. what can we expect from seyria? >> the first thing that goes out the window is the plan so anything can happen. syria does have an air defense system. they have believed to have shot down a turkish yet near the border a year ago. at least three times this year taking out missile stock piles destined for syria's ally, hezbollah.
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the thinking is certainly the u.s. can as well. syria does have the yakhont missile. israel is believed to have destroyed part of that stock pile but not all of it. this is a very dangerous shore to sea fired antique missile with a range of 185 miles. this is video of a test by singapore's navy a few months ago. you see the rocket being fired and it hits its target with deadly accuracy. they are highly regarded. so clearly that something u.s. ships would have to watch for if they are operating in the mediterranean as it is expected they are as we just heard from jim miklaszewski. >> no one knows what a u.s. attack would look like, many believe it would across cruise missiles fired by naval ships in retaliation for attacks, they could hit turkey, a u.s. ally and already mentioned israel.
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it's capable of striking anywhere in israel. a member of assad's national council said yesterday, and i quote, we have strategic weapons and we can retaliate essentially the strategic weapons are aimed at israel. nobody is panicking this week. israel lies were lining up to get new gas masks in case. this is from a gas mask distribution center in a jerusalem mall. israeli prime minister netanyahu said israel is prepared to hurt anyone that hurts israel. sue, back to you. >> thank you, michelle. >> we now return to an awful lot on the mind of investors, syria, the debt ceiling in just a matter of weeks. potentially talking about a shutdown of the federal government as well at some stage and then of course there's the fed's taper. david bailen. hello. >> good to have you here. >> thank you so much. >> the markets are clearly in a
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down trend. we lost 5% on the dow give or take this month. when people come to you and say what should i do with my equity exposure, i'm still up 18% for the year. >> in general people have taken a big pause in terms of what they are doing for investments but this is going to provide an opportunity to reenter the market. we're bullish on u.s. equities and japan equities and people will be adding to those positions in the week. >> we're going into september, the most difficult month for the market. potentially there's big surprises in september. syria is looming quite large over this market today. the fed tapering, the debt ceiling debate. which of those or any of those are concerning to you at this point? >> they are all of concern to us. the short term syrian situation being the most imminent. the bottom line is these are situations where information is going to be digested. the fed is going to taper at some point during the fall. u.s. growth rates are above
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expectation. what we're going to see is data that supports the idea of a strong u.s. recovery. you're seeing that in the emerging markets as they are going poorly. it's in part because of the fact of the expectation that the u.s. will do better and developed markets will do better and rates in the u.s. are going to rise. september is going to be a difficult month and fall will be highly volatile. you should be putting money to work during the markets particularly in equities. >> your assumption in that, i assume, therefore, is that any syrian attack is a short lived phenomenon and we're not going to see oil spike to 120 or 130 or 140, because that undermines the assumptions you're making. >> a prolonged engagement could change these assumptions. we don't know what's going to happen in syria. we do know the u.s. trends in terms of economic trends, when you look at autos and housing and basic employment, when you look at the actual productivity in a country are on a very strong up trend that we think is
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leading the world right now. you have to look at that in light of the short-term. i agree we're going to have to wait and see what happens on the short-term issues but the bottom line is, at some point this fall, you'll have a major opportunity to put it to work. >> very quickly, you're bullish on the u.k., i believe? >> the u.k. in particular and you're seeing signs of growth starting in europe in general. if you think about it this way, you have u.s. growth and some signs of european growth and some signs of growth in japan, few in north asia, north that this could become a growth trend. we're thinking it could occur this fall. >> i hope you're right, david. >> i hope i'm right too. >> david, thank you. >> now to the international news, nbc's richard engel is just outside of syria in turkey. richard, i understand that you met today with a top syrian rebel leader. what did you learn? >> reporter: we met with general
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overall commander of the free syrian army, i u.s. backed rebel faction, one of the many rebel factions fighting in syria. he told us he completely supports the u.s. military strikes if they do in fact happen and fear that if no action is taken or no decisive action is taken, it would only em bolden president assad to use chemical weapons again, perhaps on a larger scale. he also gave us new information about how these chemical attacks themselves took place. saying they began around 2:45 in the morning last week. they were launched from at least four different locations and all controlled by the syrian military, including the military airport on out skirts of damascus. 29 rockets were fired. not sure how many of them were tipped with chemical warheads that they were fired at 10 different civilian locations. many people didn't realize what
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was going on. they had seen a lot of war fare and thought there was another conventional attack. then dozens and hundreds and thousands of people started to rush to hospitals, choking, some of the babies and infants started to die. the most quickly. medical personnel began to douse the injured and people choking with water and vinegar. but they were doing this inside these medical treatments, it just washed the chemical agents to the floor creating a bath of infected material which infected some medical volunteers and infected other patients. he also said that since the incident, more than 350 people have died of their injuries. >> obviously an awful situation. thank you so much for keeping us up to date. stay safe. nissan holding a big event in california and ceo was expected but what happened? he's a no show. phil is on if next.
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remember raj rajaratnam, wait until you hear about his jail cell. >> he's serving 11 years behind bars for insiding trading. why is this fat cat apparently living like a king and with a man servient? we'll have much more on power lunch in two minutes.
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welcome back, twitter making a big move into e commerce
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creating the new position of ahead of commerce and appointing nathan hubbard. he will report drktly to adam bain. this is a big move for twitter looking to potential diversify the revenue ahead of an expected ipo. hubbard has experience at ticket master and pushed out recently. the company saying they are looking for someone with more tech no logical experience. twitter seems to think he has that. back over to you, sue. >> thanks very much, julia. japanese automaker nissan has been wrestling with a rising yen and infin ty luxury brand struggling in the u.s. the company now looking to get back on track for 2014. phil lebeau is live. >> reporter: you mentioned all of the issues about the ceo. we were going to talk with him
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about it here in ir vine but we were told carlos is not going to be coming to this event. we asked for some specifics as to why he canceled that, he is unfortunately detained and cannot be here but there will be other executives who will we be able to talk with. we'll tell you why this is an important event. here's the statement from nissan, mr. ghosn will not join us. we have a number of senior executives including andy palmer who will present the technology and give the keynote address. as we mentioned, this is a big event for nissan because they have media coming in from around the world every five years hold the nissan 360 event. and this year holding it in irvine, where sales are on par with the rest of the market but the infinti division is struggling, down 1.9%. nissan has announced it will be
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selling autonone mouse driven cars. it is developing these vehicles with leading universities around the world but here's the interesting thing. they made a big presentation and we're working with tech firms in the silicon valley but not working with google on developing the vehicles. as you look at shares of nissan, like all automakers it is in a race to develop self-driven cars over the next several years and simon, i want to show you this car. they've taken it out stay little bit to show us how it works. what's interesting in the future, you'll notice the vehicles having sensors built into the bumper. on this one it's built into the side as well. they are a long ways from autono autonom autonomous vehicles becoming a reality. wish he could be here, he said
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they would build electric vehicles, they've done that and we'll see if they can come up with this as well by 2020. >> thank you very much. convicted insider trader raj rajaratnam is living like a king in prison. get this, he apparently even has a man serve ant. andrea day is here with more on an extraordinary report. andrea? >> all right, talk about living large, according to the new york post, rajaratnam has his own bathroom adjustable bed and believe it or not a private man servient. all part of the alleged deal in massachusetts. according to the post source, he's living like a king of the one time hedge fund billionaire got a prime cell in the big house. and according to the post, if he
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doesn't feel like walking to the mess hall, his man servant whips him up something. it sounds like a scene out of good fellows. >> you get the picture of guys in rows and rows behind bars. it wasn't like that for wise guys. >> most inmates at the prison aren't living it up. the post says most of them are sharing cells and bathrooms but for some reason, raj is allegedly getting very special treatment there. according to court records, he has diabetes and may need a kidney transplant but we don't know if that means he's too sick to make his way around the place or share a bathroom. we reached to the prison and they refused to comment. raj's lawyer calls it all complete rubbish the post saying that the servant is waiting on raj hand and foot hoping to be
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his driver when he gets out. >> i'm sure we'll hear a lot about that in the coming months. jack lew speaking exclusively to cnbc. who he thinks will be the next fed chief. that's ahead. a new episode of the profit tonight at 10:00 eastern here on cnbc. the host takes on one bad boss. marcus is coming up here next. the most free research reports, customizable charts, powerful screening tools, and guaranteed 1-second trades. and at the center of it all is a surprisingly low price -- just $7.95. in fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. i'm monica santiago
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jack lew urging congress to raise the debt ceiling, saying that president obama will not negotiate over the hot button issue. john is live with his exclusive interview. >> the president said he's not going to negotiate although he is going to negotiate on an extension of government funding and what to do about the sequester. but those aren't the only things on his plate. i asked whether or not he was concerned about the market reaction to two different events, the potential for military strike against syria and also the potential tapering of federal reserve's bond buying program. here's what he had to say. >> you know, i focus on the core economy here. we have foreign policy decisions that are going to need to be made for reasons other than core economics. and obviously we'll have to manage accordingly. in terms of fed tapering, as treasury secretary don't comment
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on monetary policy. but i will focus on core economics. we've seen -- >> how strong is the core economy? >> i think it's been growing in the 2% range and i think it's important to note that's with substantial head winds from federal policy, some on purpose, some not on purpose. we withdrew the payroll tax cut but that was a short term policy that had to be withdrawn as we saw economic growth and across the boards cuts of sequester are an unintended self-inflicted wound and meant to be replaced by long-term savings that would be a sensible path for the future. in spite of those drags on the economy, we're seeing 2% growth. as we get to the end of the year, we think that without the head winds of additional federal cuts, the economy should pick up a notch again. >> reporter: it's clear treasury secretary lew has a strong basic confidence where the economy is. one issue he would not touch with a 10-foot pole, whether or
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not larry summers would be an effective fed chair. jack lew told me i'm going to keep my thoughts on the fed where they ought to be in the privacy of the oval office. >> john, thank you very much. >> let's get back to the equity markets. we're now down 139 and falling. paul has more on what is turning out to be a rough day. >> we have a problem. bad news would be good news in the sense it would help the markets on bad economic news but we're not getting that because look at some of the interest rates sensitive groups, we've had a string of crumbmy reports and yields have been dropping on the 10-year. in theory that might be good news and the fed might postpone some of its tapering or intensity of its tapering but the s&p the market is not impressed we're sitting at 6-week lows. close to a 6-week low.
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maybe 3% off the historic highs and none of the groups you think might be doing better are responding. utilities had a terrible time of it in the last couple of weeks and other groups largely interest rate sensitive are not responding as well. also sitting near a low for the month. we're having a tough time and syria was a little thing that's pushed people over. in addition to trying to figure out who's the next secretary out there -- fed chairman out there, what the german elections are going to be like, what's going to happen in italy? a whole slew of things not answerable and the piling of the unknowns is starting to bear on things. this is the weakest month of the year. august and september traditionally down. >> gold is closing now above key level. jackie is live. >> good afternoon. we're seeing the premium creep back into the metals market.
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traders are muling over a military strike on syria and wondering when it could be. officials are saying as soon as thursday. renewed interest in gold here. first time we'll see a close above 1300. 1428 traders saying and some saying that the recent swings higher are getting funds back into the market as well. with silver, more pronounced moves than gold, 2.5% on the day, closing near 4.5 month highs. >> let's head to the nasdaq. >> the tech sector is significantly underperforming the market. apple, google, ibm, my kron tech, some that are underperforming the market. one specific tech stock or story on the radar, microsoft, there are media reports that say microsoft has cut its estimate
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of xbox one fiscal shipments. >> the equity market's loss is the bond market's gain. rick santelli is live. >> thanks, simon. syria is getting top billing. you can sense the buying that's going on and it's not hugely aggressive but one way trade. looking into day five and ten, the auction at 1:00 eastern wasn't horrible, about average. but right around that time when our 10-year broke under a key support level of 274, even though its flight to safety maybe not the economy, it matters. very significant. the dollar index is anything but a safe harbor as you can see on the two-day chart. the collateral damage, shouldn't be a surprise we're down 140. look down 2.4%, down 2.25%.
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we continue to see around the globe all traders dealing with similar trading styles in the event of syria. back to you. >> thank you very much. coming up, hiring americans with disabilities, 70% of those who have a disability are not working but pharmacy chain walgreens is making a big push to change that. the ceo joins us. back in a moment. (announcer) scottrade knows our clients trade
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did you know 70% of americans with disabilities are not working. that's about 10 million potential taxpayers. kesseler is a national organize helping people with disabilities. the foundation is part of collaborative effort with fortune 500 companies and wahl greenz is one of those partnering and employeeing 1,000 individuals with disabilities. the company also offers training and hiring at retail store levels with the retail employees with disabilities initiative.
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roger derose is ceo of kessler. gregory wasen is the ceo of walgre walgreens. kessler has been on the forefront of people with disabilities for some time. give me the state of the job market right now for people with disabilities. there are laws in place but as you pointed out in a recently penned article, just because a law is in place, affecting people with disabilities doesn't mean opportunity necessarily follows that. >> that's right, sue. it's amajor issue here in our country. there's 56 million americans that have some type of disability. and only 20% of the working age population of that 56 million are working today. it's a huge issue that we face as a country in terms of benefits. what we've been focused on at kessler, how can we demonstrate to american corporations that hiring people with disabilities
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adds to their bottom line, potentially adds to their market share and does something great that helps an individual feel like they are contributing to see society again. >> mr. wassen, how has it worked for you. you've been actively decree k l people. tell me about it. >> sue, as roger said, it's been certainly a big initiative of ours. when you think about people with disabilities are a vastly underutilized workforce with 250,000 employees across the country and nearly 8,000 locations in communities, we need to find talented pools everywhere. people with disability, they want to work. they are absolutely can be qualified to work in a variety of positions in our supply chain and distribution centers and retail stores and really have a deep down desire to do the best job they can. so we have -- we have employed
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people with disabilities in our distribution centers, nearly 10% of the folks we hire or employee in the supply chain are people with a disability. we're moving that initiative into our retail stores with 8,000 locations we should be able to really move the needle in a big way and hire -- from a really talented workplace. >> roger, how do you deal with ceos who may look at what you're doing and saying that is what we should be doing, for the greater good but i'm worried the cost of refitting the workplace is going to be too high or my insurance costs are going to be higher potentially as a result of having people with disabilities and worried that my system isn't strong enough to support a more complicated workforce or a workforce that may have kind of unique tensions inevitably as a result of what you're trying to do. >> these are issues every ceo
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faces when you look at walgreens or what we did at lowe's working with people at them or now office max, fear is the number one issue they face in terms of addressing these myths that exist in the marketplace. but, if you look at -- >> is it a myth your health care costs will be higher? >> no, that is a myth. that is as well as the cost of accommodations, it's a myth. these are unfounded and when you actually hire people with disabilities you can actually see their productivity and see that they have less turnover and see that they have great loyalty to the organization and importantly, they can do the job. >> has that been your experience, mr. wasson, in terms of the performance of people with disabilities? i understand in general they plan to be more loyal to the organization than others, perhaps? >> absolutely, sue. roger is spot on. we started employeeing people
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with disabilities in the first distribution center in north carolina seven or eight years ago. we have studies that show -- 20% fewer accidents in our distribution centers. we have 70% lower workers compensation costs, lower absenteeism and nearly twice the retention of these employees. people with disabilities want to do a good job. they are thrilled to be employed. and we -- this was not charity for us. this is about making sure we have the same standards for people with disability and typically abled people. and the entire work environment has improved. these distribution centers, we have one in windsor, connecticut as well. both of them employ nearly greater than nearly 40% of the workforce are people with disabilities and 20% more
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efficient than our older generation distribution centers. >> that's a great place to leave it. thanks for doing great work. appreciate it very much. >> when it comes to retirement, surprise, surprise, many people in the country are simply not saving enough. how much do you need to put away to meet your financial goal? we'll be crunching the numbers for you next on cnbc. [ male announcer] surprise -- you're having triplets.
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lessons and feed your kids and save for retirement now. >> fidelity found the average 401(k) balance was $80,600 for most workers it's not enough to secure retirement. >> the rule of thumb, save anywhere from 10 to 15% of your income towards retirement and even incremental change, a 1% change today can make a big difference and create hundreds of dollars in potential income and retirement. >> fidelity gave us a look at how much 401(k) investors at various ages would need for every $1,000 they need to generate in retirement income. they found a 25-year-old just starting to save would only need to put away $160 a month. if you start to save at 35, you'll need to contribute almost $270 a month to generate the same income. a 45-year-old beginning to save for retirement would have to put away nearly $500 each month.
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a 55-year-old boomer would have to put away more than double that amount with mondayly contributions of $1154 for every $1,000 in monthly retirement income. the bottom line, if you're not saving enough each month, even the best performing investments won't get you to your goal. >> you think the guy you work for is tough to get along with? just wait until you see what the profit is dealing with this week on cnbc. marcus takes on one bad boss next. we found two guys who need a little advice on their own business market. marcus kill giwill give it to tt for free.
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tonight the profit returns, a lot of talk about tonight's show but first we want to show you a clip from tonight's episode. he's outdone himself. this week's episode takes place inside an l.a. pet spa. >> it's okay. you're frustrated, right? >> yes. >> tell him how you feel. he's not going to get mad. >> i'm listening. >> go ahead. >> it's our livelihood here. and it's never been considered. we're working so hard. >> explain what's been going on. >> marcus understands. >> i understand. you don't understand. >> no, you don't understand. you don't understand. >> what do you mean you don't
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understand? >> because you don't know the history. >> the history is the people who work here don't want to [ bleep ] do it anymore. >> that's the easy way out. that's the easy way out, marcus. >> you know what the easy way out for all of them is -- >> leave. >> what's the easy way out? >> to leave. >> quit. to leave. >> to leave, that's their easy way out. then you'll be totally up [ bleep ] creek. that's just the beginning. there are many more fireworks after this. believe me. trust me. i took a sneak peek. watch "the profit" at 10:00 p.m. eastern time. i don't know how you didn't deck the guy. he's so awful. >> my contract doesn't allow me to deck the guy. >> it's the morales clause thing. >> i think the bigger concern and this is a microcosm, our bosses and treating this people
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this way, we didn't get much business in except the business of people. i don't know with a to do here but a number of employees since we finished filming have quit. the place is literally crumbling and the guy wonders why. >> understandably so, i've never seen anything like it. is this the toughest one you've taken on. >> it's the toughest character because you see people crying who need the job and have mortgage payments and rent payments and car payments, tuition payments. that's why they stay. they love the animals. the one thing i'll tell you, he does treat the animals well. he doesn't mistreat animals, he mistreats people. >> it is an amazing episode. you always have said the culture and respect that you create in yourself as a ceo, that is then reflected in the employees and it doesn't sound like he understands that concept whatsoever. >> he didn't. i was at an interview earlier at aol. they were previewing this clip and the guy asked me, this looks
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familiar. i said, i'm not going to go there but what i'll tell you, the employees rely on the leader to set the tone and mood. when you're disrespectful, you're in trouble. >> this one is must see tv, set the dvr, tonight at 10:00 p.m. eastern time. we'll put marcus to the test again, a couple of business owners from irvine california, do men's grooming and want a little advice. this is their business, marcus, in a nutshell. >> there are two things a man should never ever do. one, he should no go through a woman's purse. and two, he should no go to her salons. barber shops are dying. you have concepts like a value quick cut places that were not doing it for the affluent and discerning men. young men are much more sensitive to grooming, identifying with their grooming
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needs. you know, we know about manscaping and shaving and we're right in the sweet spot of the way. we have operating and end development 40 locations by the end of the year we'll have 70 and end of next year more than 200. we're a premium brand. we make a promise and the most important thing is to deliver on the promise. as we bring in new partners we'll train them on how to do that. my fear is we don't do it consistently. and if we don't, how do we identify the problem and fix it fast? >> all right, let's bring marcus in. what do you think? >> first of all he said he doesn't think it's good for a man to go to a salon. i know i go to a salon. you go to a salon. >> i go to a salon, you're right. >> that's because i don't have very much hair. >> me either. >> the biggest issue with the
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gentleman is he says he's going to open 70 to 100. where is he getting the financials? >> scott griffiths. >> where are you getting your money from to open these stores? >> we have financing through our financing, we have outside investors that have stepped forward to help us and also through franchise sales we capture revenue through franchise fees. >> have you sold from franchi franchisees already? >> we typically sell three units to a franchisee, we sold 12 in the last 90 days. and in fact we recently sold a six-unit sale. and we're averaging about 3 to 4 three-unit sales per month. >> i love your concept. one of the things i love about it, it's high margin. as you replicate the process,
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you'll be challenged with replicating the experience. as you go down and create franchises, make sure the franchise rules are strict about the way people are greeted and treated and pricing model. don't be in a hurry to go from 70 to 200. be more methodical and test the theory out. but you have a great business. >> thank you very much. appreciate that input. >> best of luck to you, gentleman. marcus, thank you as always, we love having you on the show and i love "the profit". >> enjoy tonight. >> we will. >> make the popcorn and settle down -- >> we're done with popcorn. >> sorry about that. >> ahead on the show, we've been back slightly, know down 119 points as you can see. how traders are playing the slide with so much potentially to play out in the middle east. clients are always learning more
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to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies."
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let's get the view of someone who knows how crises play out. are you worried about syria and the market? >> yes, i am, it's oots wide open variable. i know some people are dismissing it as an excuse for a markets looking to go down. if you look at things like the spread between brent and west texas beginning to spread out, that tells you there is real concern. there are no easy answers to syria. i mean, you don't take a cruise missile and knock out chemical weapons. you might spring the chemicals
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loose. >> what's difficult about syria also is the possible involvement with russia. when i talked to analysts this morning, that has them worried, the israel situation and russia. russia repeatedly voted against resolutions in the u.n. condemning syria. and that broader impact is what i've heard is making the market very nervous today. >> that plus the influence of iran, who are also involved in that. then the proximity to israel, it's like throwing matches into a box of firecrackers and the potential is great. that's raising anxiety here. they are trying to get things back together but maybe pretty the dow up a little bit but it doesn't look like it's going to work very well. >> does it make the taper less likely? with the other deadlines we have on capitol hill, do you think the fed will be more dofish as a result of this? >> they would love to taper but
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it's going to be difficult for mr. bernanke to keep a straight face and say this is a data driven decision. unless he gets a miracle with the payrolls, i think it's going to be tough to justify tapering. >> we'll leave it there. thank you very much. ahead on the show, winners on the down day for the dow.
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we're now down 123 points. obviously front and center what's going to happen with syria. my suspicion is the news that will more likely like out from potential european partners be that the french or british, but we'll watch over the next 24 hours of those individual stocks on the move today, sears was higher on section overall but it is a fairly broad based move down. financials on the back of that. semiconductors have been hit quite badly. >> jc penny was up considerably earlier on and it has lost that strength barely holding onto the green. interest rates have been moving to the downside. part of that is the flight to
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safety with the worries over what's possible to happen in syria perhaps later this week or weekend. declining interest rates and stocks, which you usually don't see. >> it's our job to keep you plugged in and we'll continue to do that on cnbc, that's all now fr "power lunch." "street signs" begins right now. it's a macro threat tuesday here on "street signs." reports say the u.s. may be ready to strike syria and the now annual debt ceiling fight in congress is back upon us. we have your safe harbor playbook. the end of an era for j c penny and now what for the retailer. do new products really help restaurant sales and their stocks? we'll dig in as mcd's gets ready to roll out wings and what state has the most casual

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